This is a known defect associated with the JSP Execution Monitor. It was fixed with VAJ 3.5.2 but reappeared in VAJ 4.0. You get this error if JSP Execution monitor is enabled to "Retrieve Syntax Errors". A work around (other than disabling the JSP EM) is add empty directories in the WTE project folder corresponding to the "Packages" which are not resolved. For example: For "import javax.servlet.jsp.*" Be sure there is an "empty" directory on your system at: <VAJ Install Dir>/ide/project_resources/IBM WebSphere Test Environment/javax/servlet/jsp Cheers!